Bids for BSP bills reach P140.

53B
Published June 20, 2021, 7:00 AM
by Lee C. Chipongian

The auction of Bangko Sentral ng Pilipinas (BSP) 28-day securities continued to be

oversubscribed with a rising yield, according to BSP Deputy Governor Francisco G. Dakila
Jr.

The BSP offered P100 billion BSP bills last Friday, and it received P140.53 billion tenders.
The bids were lower compared to June 12 tender at P162.69 billion. The bid coverage ratio
this week was 1.4053, lower than last week’s 1.6269.

“The BSP kept the offering in the 28-day bill auction at P100 billion which it awarded in
full amid good demand,” said Dakila. Total bids were about 1.41x the offered amount.

The weighted average interest rate continued to rise, increasing by 1.444 basis points to
1.8109 percent from 1.7965 percent.

“The modest increase in the 28-day bill rate remains in line with market participants’ search
for yield in the longer tenor,” said Dakila. The yields accepted shifted higher but narrowed
to a range of 1.780-1.845 percent, he added.

BSP Governor Benjamin E. Diokno said last week that they “continue to study the
possibility of introducing another tenor” for the BSP bills.

Since its first offering in September 2020, there was just one tenor, the 28-day, which used
to be the 28-day term deposit facility, another of BSP’s liquidity absorbing facilities.
Diokno said market sentiment has improved as indicated by high oversubscriptions in the
primary auctions for government securities and the BSP’s TDF and reverse repurchase
facility.
SCRIPT:

Good morning from the studio at ABC News headquarters here in Metro Manila, good to be with
you. Welcome to Newsline, it’s Saturday, June 26, 2021. I’m Ferry Sign Quilaton. Bringing you
the latest news around the Metro Manila.

For the details of our news…

Bangko Sentral ng Pilipinas (BSP) bills reach P140.53B
After the BSP Offered P100 Billion BSP bills last Friday, June 18, 2021, and it received P140.53
billion tenders.

The bids were lower compared to June 12 tender at P162.69 billion. This week's bid coverage
ratio was 1.4053, down from 1.6269 previous week.

"The BSP kept the offering in the 28-day bill auction at P100 billion which it awarded in full
amid good demand,” said Dakila.

The weighted average interest rate continued to increasing by 1.444 basis points to 1.8109
percent from 1.7965 percent.

"The modest increase in the 28-day bill rate remains in line with market participants’ search for
yield in the longer tenor,” said Dakila. The yields accepted shifted higher but narrowed to a
range of 1.780-1.845 percent, he added.

BSP Governor Benjamin E. Diokno said last week that they “continue to study the possibility of
introducing another tenor” for the BSP bills.

You have just heard the latest news around the Metro Manila. Again this is ABC News. News
with no bias, news with no exception delivering nothing but the truth. This has been Ferry Sign P
Quilaton. Bringing you the latest news around the Metro Manila. Have a great day!